ANALYSIS OF INVENTORY PROBLEMS OF VIETNAM PHARUSA JOIN STOCK COMPANY

HO CHI MINH UNIVESITY OF TECHNOLOGY AND EDUCATION INVENTORY MANAGEMENT ANALYSIS OF INVENTORY PROBLEMS OF VIETNAM PHARUSA JOIN STOCK COMPANY M.E Nguyễn Hoàng Long Ho Chi Minh, 15 October, 2021 TABLE OF CONTENTS PREAMBLE CHAPTER I: INVENTORY THEORY Inventory management 1.1.General inventory .4 1.2.Inventory classification .4 1.3 Inventory expenses 1.4.Inventory management function .6 inventory management measures CHAPTER 2: SITUATION OF INVENTORY MANAGEMENT AT PHARUSA VIETNAM JOINT STOCK COMPANY .10 2.1 Overview of Vietnam Pharusa Joint Stock Company 10 2.1.1 About Pharusa Vietnam Joint Stock Company 10 2.2.The situation of management of inventory at the vietnam joint stock company 11 2.2.1.The method of accounting for inventory at the vietnam joint stock company 11 2.2.2.Classification of inventory of vietnamese joint stock companies 12 2.2.3 Characteristics of inventory of Vietnam Pharusa Joint Stock Company .12 2.2.4 Inventory management process at Vietnam Pharusa Joint Stock Company 13 2.2.5 Advantages and limitations in inventory management of Vietnam Pharusa Joint Stock Company 15 CHAPTER : LEAN SIX SIGMA 16 Define : 16 Measure .16 Analyze 18 Improve 19 Control 22 CHAPTER 4: FISHBONE DIAGRAM (5M+E) 23 CHAPTER 5: CHECKLIST FOR INVENTORY AUDIT 27 CHAPTER 6: INTERNET OF THINGS Open mouth Bagging automation – OMBA The palletizing robot system is used for all types and sizes of bags Combined with the traditional bagging system or the valve bag weighing systems suitable for bags: 5-50 kg, with flexible sensitivity, high accuracy 30 CONCLUSION 36 REFERENCES 37 PREAMBLE The inventory administration is one of three focal areas of the management of mobile assets The inventory administration is important to make managers, marketing management, and financial management to work together to achieve unity There are different views of the inventory policy, to have a balance of different goals such as: reduce production costs, reduce inventory costs and increase the ability to meet the needs of customers The storage of the enterprise' s reserves is the enterprise assets stored for production or sale later In enterprises, inventories include raw materials, production fuels, unfinished products, products of goods waiting for consumption Depending on the business lines of which the proportion of the property is different from the same The management of inventory in enterprises is very important, not just because in the inventory business that accounts for a significant proportion of the total assets of the enterprise More importantly, thanks to the proper reserves, it will make daonh non - disruptive in business, without product shortage to sell, while helping businesses use savings, reduce inventories CHAPTER I: INVENTORY THEORY Inventory management 1.1.General inventory Inventory is one of the most valuable assets in the total value of an enterprise, usually the value of inventory accounts for the total value of assets of the enterprise As a result control, good control of inventory is always a necessary problem, mainly in production management Inventories are considered all reserve resources to meet current or future needs Inventory consists of unfinished product materials, semi - finished products, accessories, finished products, depending on different types of enterprises that form contents of the contents of the plan as well as the control control system 1.2.Inventory classification Inventory is the quantity of goods that are generated in business to meet future demand In production, inventory is usually classified as four categories, namely: 1) inventory of raw materials / components 2) inventory of unfinished products 3) complete inventory 4) inventory of miscellaneous goods serving production or service 1.2.1.Materials / components Materials and components are the main components to produce the final product Here we will not mention the materials used to support production, but only to the main materials that serve the production process, thus creating products 1.2.2 Unfinished product It is the products being turned into products from raw materials but not yet, and on the line of production, the product is already finished, but the packaging is not packaged, which is considered unfinished, not published There may be a situation in which the inventory remains in progress is due to non - rhythmic coordination between production phases 1.2.3.Finished product The inventory of finished goods is all the goods that have been perfected all the stages and ready to be sold For example, a number of garment men' s shirts, which have completed all of the sewing lines, are in the warehouse of the producers and the distribution, which is considered to be inventories in the product form as a product of the product, which is still in the manufacturer' s warehouse, and the product is considered to be inventories in a product form as a product 1.2.4 Inventory of auxiliary materials All types of company items purchased are not part of the product but necessary to serve the production of the products called miscellaneous items serving production, stationery in this category 1.3 Inventory expenses There are three kinds of inventory 1.3.1.Purchase cost Is the cost to buy or produce each item inventory This cost is often expressed in the cost of a unit multiplied by the quantity received or produced Sometimes the price of goods is reduced if we buy the same at the same time Usually the purchase costs affect the selection of inventory models, except the output model 1.3.2.Order cost Including the costs in finding the supply, the form of order, the implementation of the order of order to support the phòng…khi activities of the order, which is still available, they are understood as the cost - preparing cost of the order 1.3.3.Reserve cost In the course of storage of raw materials, unfinished products, finished products to keep them secure to serve their production and consumption, the storage management department needs to apply some of the measures to preserve and store These activities also cost a substantial expense This cost is usually calculated as the percentage of the item' s value The costs related to the storage or operation of this inventory can be statistically statistical below: Table 1 Ratio of inventory Cost group Ratio of inventory House or warehouse costs - Rent or house depreciation - Airline operating expenses - Land tax - From 3% to 10 % Housing insurance Cost of equipment - Equipment or equipment depreciation - Energy - Equipment operating expenses From 1% – 3, 5% From 3% – 5% Costs of human resources management From 6% – 24% Cost of investments in inventory: - loan cost - inventory tax - inventory insurance From 2% – % Damage caused by loss of damage caused by damage can' t use it The rate of each cost of money is relative, they depend on each type of business, the distribution location, the current interest rate Normally, the annual cost of inventory is approximately 40% value inventory 1.4.Inventory management function 1.4.1.Link function The most important function of inventory management is the link between production and supply When the supply and demand of a stock of a stock is irregular between periods of time, maintaining a constant inventory of inventory to accumulate enough time is an essential problem 1.4.2 The prevention of inflation A business if the price increases of materials or goods, they can reserve inventory to save costs Thus, the inventory will be a good investment activity, which is of course when we have to consider the costs and risks that may occur in the process of inventory 1.4.3 Function A rather important function of the inventory administration is deducted by quantity Many vendors are willing to accept deductions for orders with large numbers The purchase of a large quantity may lead to the decrease in production costs, however, purchases with large quantities will incur high inventories due to the inventory management, which is expected to determine a maximum amount of goods to enjoy, which is not significant Inventory management measures 1.5.1 Inventory system The inventory system is a collection of procedures or business policies that income or maintenance is based on There are two basic inventory systems: - Continuous review system - Periodic review system In a continuous review system, inventory is always monitored When the inventory is low, they will order The company keeps q - food at the same level that the inventories fall to r because each time a number of the same numbers should be called, the system is called a fixed order system (fixed order size - foss) or' the number of economic orders'” ( economic order People also call the periodic review system' how the order system is” ( fixed order interval systems –, or' economic order systems spacing” ( economic interval interval systems 1.5.2 ABC standard In stock, a few items usually have value measured by the currency account for most of the total inventory So we can focus actively on testing some of these types of items In the inventory, people are distributing goods to three categories: a, b and c The analysis of abc is the total number of inventory to groups: a, b, c, based on their annual value This year' s value is determined by collecting components: annual demand for inventory and cost per inventory unit and each type of inventory Specific standards of each inventory group shall be determined as follows: - group a: including the highest - value inventory, they have a value of 70 – 80% compared to the total inventory, but the number of items they account for is total inventory - group b: include inventory that has annual value at average, they have 15% - 25% value compared to the total inventory, but the output is about 30% C - group c: including the ones with a small annual value, the annual value accounts for only about 5% total inventory value, but the number of them accounted for about 55% In the graph we can represent the standards of the inventory groups in the analysis of abc as follows: Group A Group B Group C Figure 1.2 – Description of the ABC standard Note: The vertical axis is the value of Inventory Management The horizontal axis is the output Inventory Management In addition to their annual value for classification, other criteria are also considered, such as: - Changes in prediction techniques - Supply problem - Quality of inventory - Prices of different types of inventory ABC analysis technique has the following effects in inventory management: - The potential resources used to purchase group A products need to be much higher than that of group C, so there should be appropriate investment priorities - Group A goods need a strict inventory control in kind, the establishment of accurate reports on group A inventory must be done regularly to ensure product safety export - In forecasting material demand, we can apply different forecasting methods for different groups of goods Group A needs to be forecasted more carefully than other groups - Thanks to ABC analysis technique, the level of warehouse staff will be continuously improved, because they regularly perform audit cycles of each group of goods In short, ABC analysis techniques will give them better results in forecasting, controlling artifacts, ensuring the feasibility of sourcing, and optimizing inventory levels 10 Because of the lack of team-to-team interaction, the management 3) why is there a lack of interaction between the team and the team, the management Because the management is incompetent 4) why is the management incompetent? Because they are not properly trained 5) why not properly trained? Because the company focuses on promoting the product  Solution Should focus on balancing the two, training employees, especially talented people to help the company operate better Measurement: products are in stock 1) Why is the product in stock? Because there is no notepad, timekeeping 2) Why is there no notepad, timekeeping? Because of not regularly monitoring the progress 3) Why not regularly monitor progress? Because there is no clear goal 4) Why not have a clear goal? Because I don't know how to define and plan 5) Why not know how to define, plan? Because of the lack of skills to implement ideas  Solution Specific monitoring in the process of working and management Equip employees with necessary knowledge and skills Equipment: damaged machine 1) Why is the device damaged? Because it happens often 2) Why does it happen so often? Because the staff has not determined the cause 3) Why hasn't the employee identified the cause yet? Because the machines are outdated 4) Why are machines obsolete? Because it is not equipped with new and modern machinery  Solution Test intends to sign and speed up the process of equipping a new machine, carefully instructing before using to avoid the situation of not knowing that the device is damaged Materials: redundant 1) Why is the raw material redundant? Because customer needs are not met 2) Why not meet customer needs? Because I don't know how to calculate the rationality in exporting and importing goods to supply goods 3) Why not know how to calculate the reasonableness in exporting and importing goods to supply goods? Because the employee got the wrong parameters 4) Why employees get the wrong parameters? Tired of working overtime 5) Why are you tired from working overtime? Because of not allocating resources properly  Solution: Optimal resource allocation combined with technology for more efficient storage and computation Method: wrong way of operating 1) Why the wrong way to operate? Due to lack of knowledge 2) Why lack of knowledge? Because they don't focus 3) Why are they not focused? Because they have an unenthusiastic working attitude 4) Why they have an unenthusiastic working attitude? Because they only care about doing their best, not focusing on productivity and efficiency 5) Why they only care about doing everything assigned, not focusing on productivity and efficiency? Because I'm lazy to create and apply knowledge  Solution: Strictly control, improve methods to make them more excited and work better CHAPTER 5: CHECKLIST FOR INVENTORY AUDIT Design checklist for inventory audit From analyzing the internal control system, performing preliminary analytical procedures for inventory, the auditor will design an audit program for inventory at ABC company The steps to design an audit program are as follows: • Determine the audit objective for the inventory item: Data base Existence (E) Audit Objectives Inventories are reflected on the balance sheet that actually exist in warehouses, stores, manufacturing sites, in transit or for sale at the Completeness (U) Accuracy (A) balance sheet date Inventory import and export transactions recorded in the period are real Actual transactions of import and export of inventories arising in the Evaluation (V) period are recorded in full The reported value of inventory includes all goods in stock at the warehouse, stores, stalls, purchases in transit and goods in transit at the Ownership (O) Presentation (P) time of sale All inventory is accurately identified, measured, priced, and accrued The value of inventory is calculated accurately according to one of the consistent accounting methods, the inventory accounting method is consistent, the inventory figures on the financial statements must match the accounting numbers CODE Name COMPANY NAME: VIETNAM PHARUSA Date JOIN STOCK COMPANY AUDIT INVENTORY Content Is inventory inventory done in accordance with regulations? Have you tried taking inventory as collateral for a loan? Does the security agency sign the receipts and delivery Answer Yes No Yes invoices? Is the warehouse location full? Is the inventory card system maintained? Does the storekeeper receive formal training? Are slow-moving, damaged, and obsolete inventory items Yes Yes No No Note sorted and set aside? Has the customer determined the provision for devaluation Yes of inventory? Are the stock receipts and receipts recorded in the Yes accounting books in a timely manner? 10 Is inventory valuation consistent with previous years? 11 Is there detailed costing for finished goods in stock? Yes CHAPTER 6: INTERNET OF THINGS Open mouth Bagging automation – OMBA The palletizing robot system is used for all types and sizes of bags Combined with the traditional bagging system or the valve bag weighing systems suitable for bags: 5-50 kg, with flexible sensitivity, high accuracy Open mouth bagging automation (OMBA) The system operates automatically instead of traditional workers, increasing working efficiency by times and can be completely applied on your existing bagging lines, making full use of conveyors and equipment Bags are available to optimize costs Salient features: + Fully automatic + Suitable for bags: -50 kg + Speed up to 16bpm + Pick up bags automatically + Synchronize with the speed of the load state + Structure mounted on the robot arm Compatible with all closed dual systems + Low engine room Compact design optimizes floor space + Productivity up to 18 bags per minute + It is possible to integrate automatic sewing of the mouth of the bag + inch control screen of Mitsubishi, Siemens, AB PLC + Yaskawa robot, KUKA steps & PLC control + The bag picking arm is controlled by servo + Holder clamp mechanism on robot arm The solution offered includes options for customers as follows: Giải pháp đưa gồm lựa chọn cho khách hàng sau: Hệ OMBA tiêu chuẩn Bao lớp Bao lớp Loại bao: · Bao dệt PP có tráng keo lớp PE bên · Bao giấy có lớp PE Ứng Loại bao: · Bao dệt PP lớp có tráng keo · Bao giấy · Bao HDPE Kích cỡ bao: bên · Bao HDPE có lớp PE bên Kích cỡ bao: 10 – 50kg Cạnh bao: dụng 10 – 50kg Cạnh bao: Có khơng có xếp cạnh Có khơng có xếp cạnh Hàn lớp PE: Khơng Tính Cánh tay robot trục Tốc độ: – 8bpm (bao/phút) Cấp bao tự động Điện áp: Cánh tay robot trục Tốc độ: – 8bpm (bao/phút) Cấp bao tự động Điện áp: 380V 380V – 50Hz Công suất: 8KW Áp suất: 6bar (~87PSI/ ~6MPa) Lưu lượng khí: – 50Hz Công suất: 10KW Áp suất: 6bar (~ 87PSI/ ~ 6MPa) Lưu lượng khí: 550L/min Truyền thơng: Phù hợp với chuẩn công nghiệp Giao diện vận hành thân 550L/min Truyền thông: Phù hợp với chuẩn công nghiệp Giao diện vận hành thân thiện Tích hợp với hệ thống SCADA thiện Tích hợp với hệ thống SCADA Tùy chọn Hệ cân Máy may Kiểu may Vật liệu tiếp xúc trực tiếp với nguyên liệu inox 304 (SUS304) In ngày tháng In mã code Kiểm tra kim loại Kiểm tra trọng lượng Hệ cân Máy may Kiểu may Vật liệu tiếp xúc trực tiếp với nguyên liệu: Inox 304 (SUS304) In ngày tháng In mã code Kiểm tra kim loại Kiểm tra trọng lượng Hệ OMBA cao cấp Ứng dụng Tính Bao lớp Bao lớp Loại bao: · Bao dệt PP lớp có tráng keo · Bao giấy · Bao HDPE Kích cỡ bao: 10 – 50kg Cạnh bao: Có khơng có xếp cạnh Loại bao: · Bao dệt PP có tráng keo lớp PE bên · Bao giấy có lớp PE bên · Bao HDPE có lớp PE bên Kích cỡ bao: 10 – 50kg Cạnh bao: Có khơng có xếp cạnh Hàn lớp PE: Có khơng cánh tay robot trục tự Tốc độ: – 12bpm (bao/phút) Cấp bao tự động cánh tay robot trục tự Tốc độ: 8-12 bpm (bao/phút) Cấp bao tự động Điện áp: Điện áp: 380V – 50Hz Công suất: 12KW Áp suất: 6bar (~ 87PSI/ ~ 6MPa) Lưu 380V – 50Hz Công suất: 12KW Áp suất: 6bar (~87PSI/~6MPa) Lưu lượng khí: lượng khí: 550L/ Truyền thơng: Phù hợp với chuẩn công nghiệp Giao diện 550L/ Truyền thông: Phù hợp với chuẩn công nghiệp Giao diện vận hành thân vận hành thân thiện Tích hợp với hệ thống SCADA thiện Tích hợp với hệ thống SCADA Tùy Hệ cân Máy may Kiểu may Vật liệu tiếp xúc trực tiếp với nguyên liệu inox chọn 304 (SUS304) In ngày tháng In mã code Kiểm tra kim loại Kiểm tra trọng lượng Hệ cân Máy may Kiểu may Vật liệu tiếp xúc trực tiếp với nguyên liệu inox 304 (SUS304) In ngày tháng In mã code Kiểm tra kim loại Kiểm tra trọng lượng Pallet packing system Robotic Palletizer is a term for a type of robot that is used to stack bag-type products on pallets instead of workers These types of bags are usually PP bags, paper bags, cartons, cargo boxes, etc The Robotic Palletizer system includes suitable attachments They also depend on the specific application For example: structure on robot arm (EOAT - End Of Arm Tooling), conveyor to connect system (Conveyor), check weigher (Check weigher), control cabinet (Controller), security system Safety Fences… These components will form a complete Robotic Palletizing system They serve many requirements in workshops and factories Configuring the palletizing system Robot Arm: Robotic Arm EOAT (End of Arm Tool): the gripper mounted on the robot Base for robot: Bracket for robot Infeed Conveyor: Input Conveyor Pallet Dispenser: Automatic pallet feeding Station Conveyor: Pickup Station Conveyor Full Load Conveyor: Palletizing Conveyor Discharge Conveyor: Conveyor to pallet Guarding: A protective barrier 10 Safety Light Curtain: Safety Sensor In addition, the Robot Palletizer system can further integrate: + Check Weigher weighing system, check product weight, and automatically eliminate products that fail + Wrapper machine to wrap PE film for pallet trees Robot installation areal Robot Palletizer compact design does not take up much space Currently, Hao Phuong has installed many Palletizer robot projects, so there are many different layouts to suit all customer needs With a minimum area of 5766x2362mm, it is possible to install the Robot palletizer system with Full Automation configuration Features of the robot that stacks bags on pallets Operational efficiency The robots can lift objects up to hundreds of kilograms, their operating frequency is over 1000 times/hour with a repeat accuracy of 0.06 mm The palletizing robot can work in all different environmental conditions Configuration types of palletizing systems Robotic Palletizer Systems come in two configurations: semi-automatic and fully automatic Semi-automatic system These are usually single systems There is a robot working with or production lines This configuration is suitable for factories with small capacity It is also suitable for factories with production lines located in different regions With a semi-automatic system, the palletizing to the working position of the robot is done manually Fully automatic system Usually there are or more robot systems This configuration will be suitable for factories with large capacity, many production lines and many types of products With the automatic system, the pallet will be delivered to each working position of the robot completely automatically Video: https://www.youtube.com/watch? time_continue=24&v=5fGm9ADy89o&feature=emb_title Benefits of applying Robot system to automatic production Reduce labor costs Reduce the task of managing people in the production process Improve product quality and consistency Connecting all production stages to enterprise management software (ERP) In short, the company's facilities and equipment are still not good, so the application of automatic machine technology to the company's warehouse process helps the company avoid inventory problems, improve efficiency for the company CONCLUSION The larger the inventory quantity, the higher the risk incurred Goods being exported to the market at the right time with the right quantity is the goal that most businesses aim for, including Vietnam Pharusa Joint Stock Company Vietnam Pharusa Joint Stock Company is considered as one of the leading companies in the distribution of functional food products in Vietnam The company has discovered and opened a "blue ocean" for new pharmaceutical products that support specific functions of the human body In the context that Vietnam has joined the World Trade Organization WTO, signed free trade contracts with many countries around the world and is preparing to remove tariff barriers with 95% of the products of the member countries ASEAN at the end of 2015, the supply of functional foods in the market was extremely abundant with competitive prices Faced with this challenge, the company has only options: accept being eliminated or improve the technology line, optimize business management activities to minimize incurred costs, in order to offer a highly competitive price This is an urgent requirement that makes domestic enterprises in general as well as Vietnam Pharusa Joint Stock Company in particular need to focus on their inventory management activities Above are the knowledge I have learned and drawn from Vietnam Pharusa Joint Stock Company I hope to receive suggestions and comments from teachers so that I can improve my research even better Thank you sincerely! REFERENCES Textbook of accounting in enterprises, National Economics University Publishing House, edited by Assoc Prof Dr Nguyen Anh Tuan, 2013 Textbook of Production and Operations Management, Hanoi Financial Publishing House, editors Dr Tran Duc Loc and Dr Tran Van Phung, 2008 Logistic Basic issues, Labor and Social Publishing House, editor Prof Dr Doan Thi Hong Van, 2014 ... SITUATION OF INVENTORY MANAGEMENT AT PHARUSA VIETNAM JOINT STOCK COMPANY 2.1 Overview of Vietnam Pharusa Joint Stock Company 2.1.1 About Pharusa Vietnam Joint Stock Company Company Name: VietNam Pharusa. .. inventory at the vietnam joint stock company 11 2.2.1.The method of accounting for inventory at the vietnam joint stock company 11 2.2.2.Classification of inventory of vietnamese joint stock companies... Characteristics of inventory of Vietnam Pharusa Joint Stock Company .12 2.2.4 Inventory management process at Vietnam Pharusa Joint Stock Company 13 2.2.5 Advantages and limitations in inventory